Transactions on the equity sector of the Nigerian Exchange Limited (NGX) continued to drop yesterday as market capitalization fell by N418 billion as a result of significant price losses incurred by numerous blue-chip stocks, including MTN Nigeria (MTNN) and 17 stocks.
The All-Share Index dropped by 766.56%, or 1.48 %, to finish the day at 51,127.38 points. Likewise, the market capitalization as a whole decreased by N418 billion to conclude at N27.850 trillion.
Price declines of major and medium capitalized stocks, including MTNN, Transcorp Hotels, Africa Prudential, FBN Holdings (FBNH), and Wema Bank, were the main cause of the market’s poor performance.
United Capital Plc said this week: “we expect mostly bearish sentiments in the market, supported by the illiquidity of the financial system.”
“We note that the current bear trend is approaching a turning point, as the Q1, 2023 earnings season draw nearer. We anticipate the broad-based return of investors’ risk-on sentiments, which is to be catalysed by declining yields in the fixed-income market.”
“The current low prices and valuations will allow ‘Buy-Side ‘investors the opportunity to re-enter the market and take positions in fundamentally sound stocks, thus maximising market returns.”
Moreover, the market breadth was unfavorable with 18 equities declining vs 16 advancing. The Ikeja Hotel experienced the largest price increase, rising 9.48% to finish at N1.27 per share. Consolidated Hallmark Insurance increased by 8.77% to close at 62 kobo and Transcorp increased by 9.47% to close at N1.85.
Jaiz Bank gained 5.68% to settle at 98 kobo per share, while Nigerian Exchange Group increased by 8.16% to close at N26.50. The price of PZ Cussons increased by 5.00% to close at N11.55 kobo. To conclude at N7.90 kobo, United Bank for Africa (UBA) gained 3.95 percent.
The share price of Nigerian Aviation Handling Company (NAHCO) increased by 3.77 percent to N11. 3.70 percent more Japaul Gold was up to close at 28 kobo. With N2.28 kobo, Mansard earned 3.64 percent of the vote. International Breweries also increased, closing at N4.65 kobo after gaining 3.33 percent.
International Energy Insurance, on the other hand, topped the losers’ chart by 6.98% and closed at N1.20 per share. Transcorp Hotels declined 5.80 percent to settle at N6.50 kobo, while MTNN fell 6.67 percent to close at N224.00.
e day at N2.21 kobo, Cutix decreased by 3.91 percent. To end the day at N3.66 kobo, Wema Bank lost 3.68 percent. Neimeth lost 3.08 percent of its value to close at 1.26 kobo. To close at N3.20 kobo, UPDC REIT experienced a drop of 3.03 percent. In order to close at 94 kobo, livestock lost 2.08 percent.
In 4,373 trades, the total volume traded decreased by 58.19% to 226.594 million units, worth N1.568 billion. Transcorp share transactions, totaling 107.213 million shares valued at N162.832 million, topped the list of activities.
After UBA exchanged 22.603 million shares valued at N190.356 million, Fidelity Bank traded 39.308 million shares worth N206.008 million. FCMB Group traded 12.611 million shares worth N47.830 million, while Zenith Bank traded 20.614 million shares worth N521.286 million.
